Want to save this page for later?


The Daily

IRS Requesting Feedback on Partnership Audit Rules

Chris Gaetano
Published Date:
Mar 7, 2016

irs-small-3The IRS has released a request for comment asking on how it should implement the new partnership audit rules that were signed into law last November.  

Under the new rules, as part of the Bipartisan Budget Act of 2015, tax adjustments for partnerships with over 100 members are determined, assessed and collected at the partnership level. This is in contrast to the previous method, where tax liability is determined partner by partner, which the GAO has criticized as being cumbersome and inefficient.    

The new rules are effective for tax years beginning Dec. 31, 2017, though partnerships can elect to have parts of the new regime apply to tax years between Nov. 2, 2015, and Jan. 1, 2018. The IRS said, given this time frame, as well as the anticipated scope of the guidance, written comments should be submitted no later than April 15, 2016.